Connecticut 2024 Regular Session

Connecticut House Bill HB05441 Latest Draft

Bill / Comm Sub Version Filed 04/09/2024

                             
 
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General Assembly  Raised Bill No. 5441  
February Session, 2024 
LCO No. 2519 
 
 
Referred to Committee on ENERGY AND TECHNOLOGY 
 
 
Introduced by:  
(ET)  
 
 
 
AN ACT CONCERNING UTILITY SHUTOFFS FOR CERTAIN 
CUSTOMERS.  
Be it enacted by the Senate and House of Representatives in General 
Assembly convened: 
 
Section 1. Subsection (b) of section 16-262c of the 2024 supplement to 1 
the general statutes is repealed and the following is substituted in lieu 2 
thereof (Effective July 1, 2024): 3 
(b) (1) From November first to May first, inclusive, no electric 4 
distribution company, as defined in section 16-1, no electric supplier and 5 
no municipal utility furnishing electricity shall terminate, deny or refuse 6 
to reinstate residential electric service in hardship cases where the 7 
customer lacks the financial resources to pay his or her entire account. 8 
From November first to May first, inclusive, no gas company and no 9 
municipal utility furnishing gas shall terminate, deny or refuse to 10 
reinstate residential gas service in hardship cases where the customer 11 
uses such gas for heat and lacks the financial resources to pay his or her 12 
entire account, except a gas company that, between May second and 13 
October thirty-first, terminated gas service to a residential customer 14 
who uses gas for heat and who, during the previous period of 15  Bill No. 5441 
 
 
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November first to May first, had gas service maintained because of 16 
hardship status, may refuse to reinstate the gas service from November 17 
first to May first, inclusive, only if the customer has failed to pay, since 18 
the preceding November first, the lesser of: (A) Twenty per cent of the 19 
outstanding principal balance owed the gas company as of the date of 20 
termination, (B) one hundred dollars, or (C) the minimum payments 21 
due under the customer's amortization agreement. Notwithstanding 22 
[any provision of the general statutes] the provisions of this subdivision, 23 
regardless of the month, no electric distribution or gas company, no 24 
electric supplier and no municipal utility furnishing electricity or gas 25 
shall terminate, deny or refuse to reinstate residential electric or gas 26 
service where: [the] (i) The customer is a hardship case and lacks the 27 
financial resources to pay his or her entire account; and [if] (ii) the 28 
termination, denial of or failure to reinstate such service would create a 29 
life-threatening situation for such customer or a member of such 30 
customer's household. [No] Notwithstanding the provisions of this 31 
subdivision, regardless of the month, no electric distribution or gas 32 
company, no electric supplier and no municipal utility furnishing 33 
electricity or gas shall terminate, deny or refuse to reinstate residential 34 
electric or gas service where: [the] (I) The customer is a hardship case 35 
and lacks the financial resources to pay his or her entire account; and (II) 36 
a child not more than twenty-four months old resides in the customer's 37 
household and such child has been admitted to the hospital and 38 
received discharge papers on which the attending physician, physician 39 
assistant or an advanced practice registered nurse has indicated such 40 
service is a necessity for the health and well-being of such child. 41 
(2) During any period in which a residential customer is subject to 42 
termination, an electric distribution or gas company, an electric supplier 43 
or a municipal utility furnishing electricity or gas shall provide such 44 
residential customer whose account is delinquent an opportunity to 45 
enter into a reasonable amortization agreement with such company, 46 
electric supplier or utility to pay such delinquent account and to avoid 47 
termination of service. Such amortization agreement shall allow such 48 
customer adequate opportunity to apply for and receive the benefits of 49  Bill No. 5441 
 
 
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any available energy assistance program. An amortization agreement 50 
shall be subject to amendment on customer request if there is a change 51 
in the customer's financial circumstances. 52 
(3) As used in this section: [,] 53 
(A) ["household income"] "Household income" means the combined 54 
income over a twelve-month period of the customer and all adults, 55 
except children of the customer, who are and have been members of the 56 
household for six months or more; [,] and 57 
(B) ["hardship case" includes, but is not limited to] "Hardship case" 58 
means: (i) A customer receiving local, state or federal public assistance; 59 
(ii) a customer whose sole source of financial support is Social Security, 60 
United States Department of Veterans Affairs or unemployment 61 
compensation benefits; (iii) a customer who is a head of [the] household 62 
and is unemployed, and [the household] such household's income is less 63 
than three hundred per cent of the poverty level determined by the 64 
federal government; (iv) [a customer who is seriously ill or who has a 65 
household member who is seriously ill; (v)] a customer whose income 66 
falls below one hundred twenty-five per cent of the poverty level 67 
determined by the federal government; and [(vi)] (v) a customer whose 68 
circumstances threaten a deprivation of food and the necessities of life 69 
for himself or dependent children if payment of a delinquent bill is 70 
required. 71 
(4) (A) Each gas company and electric distribution company shall 72 
deduct an arrearage from the account of a residential customer of such 73 
company if the customer (i) meets the income eligibility requirements of 74 
the Connecticut energy assistance program or state appropriated fuel 75 
assistance program; (ii) authorizes the gas or electric distribution 76 
company to send a copy of the customer's monthly bill directly to any 77 
energy assistance agency for payment; (iii) enters into and complies 78 
with an amortization agreement, which agreement is consistent with 79 
decisions and policies of the Public Utilities Regulatory Authority; and 80 
(iv) is eligible for financial hardship programs with the gas or electric 81  Bill No. 5441 
 
 
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distribution company. The amount of an arrearage deducted under this 82 
subparagraph shall be equal to the customer's monthly payment 83 
pursuant to an amortization agreement under this subdivision, 84 
provided the customer meets the requirements of subparagraphs (A)(i) 85 
to (A)(iv), inclusive, of this subdivision for the month immediately 86 
preceding such payment. 87 
(B) Each gas company and electric distribution company shall deduct 88 
an arrearage from the account of a residential customer who meets the 89 
requirements of subparagraphs (A)(i) to (A)(iv), inclusive, of this 90 
subdivision in an amount equal to any payment such customer receives 91 
from the Connecticut energy assistance program, state appropriated 92 
fuel assistance program or other energy assistance sources. Such 93 
deduction shall be in addition to any amount deducted pursuant to 94 
subparagraph (A) of this subdivision. 95 
(C) Notwithstanding the provisions of subdivision (7) of this 96 
subsection, any amortization agreement under this subdivision shall 97 
distribute customer payments over a period of twelve months, from 98 
November first to October thirty-first, and shall create a monthly 99 
payment that is affordable to the customer in accordance with the 100 
decisions and policies of the authority. 101 
(D) In no event shall the deduction of any amounts pursuant to this 102 
subdivision result in a credit balance to the customer's account. No 103 
customer shall be denied the benefits of this subdivision due to an error 104 
by the gas or electric distribution company. If the customer fails to 105 
comply with the terms of the amortization agreement, any decision of 106 
the authority rendered in lieu of such agreement or the requirements of 107 
subparagraphs (A)(i) to (A)(iv), inclusive, of this subdivision, the 108 
company may terminate service to the customer, pursuant to all 109 
applicable regulations, provided such termination shall not occur 110 
between November first and May first. 111 
(E) Each gas and electric distribution company shall submit to the 112 
Public Utilities Regulatory Authority annually, on or before June first, 113  Bill No. 5441 
 
 
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an implementation plan that shall include information concerning 114 
amortization agreements, counseling, reinstatement of eligibility, rate 115 
impacts and any other information deemed relevant by the authority. 116 
The Public Utilities Regulatory Authority may approve or modify such 117 
plan not later than one hundred twenty-seven days after receipt of the 118 
plan. If the authority does not take any action on such plan by such date, 119 
the plan shall automatically take effect at the end of such one-hundred-120 
twenty-seven-day period, provided the authority may extend such 121 
period for an additional thirty days by notifying the company before the 122 
end of such one-hundred-twenty-seven-day period. The authority may 123 
deny all or part of the recovery of costs incurred pursuant to this 124 
subsection if it determines that the company seeking recovery has been 125 
imprudent, inefficient or acting in violation of statutes or regulations 126 
regarding amortization agreements. 127 
(5) (A) All electric distribution and gas companies, electric suppliers 128 
and municipal utilities furnishing electricity or gas shall collaborate in 129 
developing, subject to approval by the Public Utilities Regulatory 130 
Authority, standard provisions for the notice of delinquency and 131 
impending termination under subsection (a) of section 16-262d. Each 132 
such company and utility shall place on the front of such notice a 133 
provision that the company, electric supplier or utility shall not effect 134 
termination of service to a residential dwelling for nonpayment of 135 
disputed bills during the pendency of any complaint. In addition, the 136 
notice shall state that the customer is required to pay current and 137 
undisputed bill amounts during the pendency of the complaint. (B) At 138 
the beginning of any discussion with a customer concerning a 139 
reasonable amortization agreement, any such company or utility shall 140 
inform the customer (i) of the availability of a process for resolving 141 
disputes over what constitutes a reasonable amortization agreement, (ii) 142 
that the company, electric supplier or utility will refer such a dispute to 143 
one of its review officers as the first step in attempting to resolve the 144 
dispute, and (iii) that the company, electric supplier or utility shall not 145 
effect termination of service to a residential dwelling for nonpayment of 146 
a delinquent account during the pendency of any complaint, 147  Bill No. 5441 
 
 
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investigation, hearing or appeal initiated by the customer, unless the 148 
customer fails to pay undisputed bills, or undisputed portions of bills, 149 
for service received during such period. (C) Each such company, electric 150 
supplier and utility shall inform and counsel all customers who are 151 
hardship cases as to the availability of all public and private energy 152 
conservation programs, including programs sponsored or subsidized 153 
by such companies and utilities, eligibility criteria, where to apply, and 154 
the circumstances under which such programs are available without 155 
cost. 156 
(6) (A) The Public Utilities Regulatory Authority shall adopt 157 
regulations in accordance with the provisions of chapter 54 to carry out 158 
the provisions of this subsection. Such regulations shall include, but not 159 
be limited to, criteria for determining hardship cases and for reasonable 160 
amortization agreements, including appeal of such agreements, for 161 
categories of customers. Such regulations may include the 162 
establishment of a reasonable rate of interest that a company may charge 163 
on the unpaid balance of a customer's delinquent bill and a description 164 
of the relationship and responsibilities of electric suppliers to customers. 165 
(B) Not later than October 1, 2025, the authority shall amend the 166 
regulations adopted pursuant to subparagraph (A) of this subdivision, 167 
to carry out the provisions of subparagraph (B) of subdivision (3) of this 168 
subsection and subdivision (9) of this section. 169 
(7) The Public Utilities Regulatory Authority may find that a 170 
reasonable amortization agreement, other than a reasonable 171 
amortization agreement under subdivision (4) of this subsection, is a 172 
period of not more than thirty-six months, unless the authority 173 
determines that a longer period is warranted. [Not later than October 1, 174 
2024, the authority shall amend any regulations adopted pursuant to 175 
subdivision (6) of this subsection to carry out the provisions of this 176 
subsection.] 177 
(8) The chairperson of the Public Utilities Regulatory Authority may 178 
distribute not more than one million dollars in total each year to 179  Bill No. 5441 
 
 
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organizations or individuals providing legal services with the express 180 
purpose of attaining participation in public service company programs 181 
designed to assist customers with utility bill or arrearage payments, 182 
including negotiating a reasonable amortization agreement pursuant to 183 
this subsection. Any funds distributed pursuant to this subdivision shall 184 
be paid by all public service companies, in proportion to such 185 
companies' annual load and the amount of services provided to end use 186 
customers or revenue, as determined by the authority. 187 
(9) An electric distribution or gas company, electric supplier or 188 
municipal utility furnishing electricity or gas may terminate, deny or 189 
refuse to reinstate residential electric or gas service for nonpayment to 190 
any customer who: (A) Is ill, (B) has a household member who is ill, (C) 191 
has a life-threatening situation, or (D) has a household member who has 192 
a life-threatening situation, unless such company is prohibited from 193 
terminating, denying or refusing to reinstate such service pursuant to 194 
subdivision (1) of this subsection or subsection (b) of section 16-262d, as 195 
amended by this act. 196 
Sec. 2. Subsection (b) of section 16-262d of the general statutes is 197 
repealed and the following is substituted in lieu thereof (Effective July 1, 198 
2024): 199 
(b) No such company, electric supplier or municipal utility shall 200 
[effect termination of] terminate service for nonpayment [during such 201 
time as] while any resident of a dwelling to which such service is 202 
furnished is seriously ill, if: [the fact of such serious illness is certified to 203 
such company, electric supplier or municipal utility by] (1) Such 204 
resident is a hardship case, as defined in section 16-262c, as amended by 205 
this act; and (2) a registered physician, a physician assistant or an 206 
advanced practice registered nurse certifies the fact of such serious 207 
illness to such company, electric supplier or municipal utility within 208 
[such] a period of time after the mailing of a termination notice pursuant 209 
to subsection (a) of this section [as] that the Public Utilities Regulatory 210 
Authority [may] shall, by regulation adopted in accordance with the 211 
provisions of chapter 54, establish, provided the customer to which such 212  Bill No. 5441 
 
 
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service is billed agrees to amortize the unpaid balance of [his] such 213 
customer's account over a reasonable period of time and keeps current 214 
[his] such customer's account for utility service as charges accrue in each 215 
subsequent billing period. 216 
This act shall take effect as follows and shall amend the following 
sections: 
 
Section 1 July 1, 2024 16-262c(b) 
Sec. 2 July 1, 2024 16-262d(b) 
 
ET Joint Favorable